by Paul Jacobs on March 22, 2012
Following it’s disastrous profit result and lackluster strategy presentation, I shorted DJS at $2.39 this morning. The company is clearly in for a tough few years, and to be honest, I think the Financial Review summed it up perfectly this morning with their headline “DJs in fight for survival”. I had a quick look in a DJS store recently upon my return from the US. I was shocked at both the sky high prices, and the lack of service. Make no mistake, these guys are in trouble, along with most of the other listed retailers in Australia.
Technically, I think the first stop is $2.30, where we may see a bit of bounce. But I reckon DJS is shooting for it’s March 09 low of $2.10, and probably lower. I am setting up my stop at $2.50.
by Paul Jacobs on February 9, 2012
I am starting to feel that the market has rallied a bit too far too fast. While the market will probably be higher in a month or two, in the short term certain stocks look overbought; both fundamentally and technically. So I’ve been scanning the market for a few shorts and have found a few good candidates. I shorted AAX at $3.24. The stock has been on fire over recent months after winning a few contracts and refinancing its debt. Trading at 12X 2012 E and 20% above its 50 day moving average, I think a lot of good news is priced in.
Similarly, MND has done well recently. Don’t get me wrong, it’s a great company, with superb management. But at 17.6X 2012 E, and trading about 13% above it’s 100 day Moving average, I’m a seller here at $22.7.
